Meta has reached a landmark settlement with 29 US states. The company agreed to pay up to $16.68 billion and to change how Facebook and Instagram operate for underage users.
The agreement was reached while the major federal trial in Oakland, California, was under way. The states had accused Meta of designing its platforms with features that encourage excessive use by children and teenagers.
What the settlement provides
According to court documents cited by Reuters, $16.68 billion is the maximum value of the agreement. It is therefore not a fine imposed by a court after a guilty verdict.
Meta did not admit to unlawful conduct. It did, however, agree to introduce significant changes for teenage Facebook and Instagram users across the United States.
The changes include:
- default daily usage limits,
- restrictions during night-time hours,
- stricter age-verification systems,
- more parental and guardian control tools.
Part of the money will support crisis-response services, after-school programmes, outdoor activities and youth mental-health initiatives.
The testimony that came before
The trial began on 18 August 2026. The states argued that Meta knew about the risks but prioritised increasing the time users spent on its apps.
Former safety engineer Arturo Béjar testified that the company followed a “don’t ask, don’t tell” approach regarding children under 13.
Instagram chief Adam Mosseri also appeared in court. His testimony revealed that only 1.8% of teenagers initially enabled the “Take a Break” feature. The tool was designed to encourage users to stop scrolling after prolonged use. Mosseri denied that the company had withheld information from the public.
From $1.4 trillion to a settlement
Before the trial, Meta had calculated that the states’ claims could theoretically reach $1.4 trillion. The states argued that a more likely figure was close to $200 billion.
As Agora reported in its previous report on Meta’s court battle, the stakes were not only financial. The states were seeking changes to features such as endless scrolling, notifications and reward mechanisms.
Read this too: Likes, followers and depression: The dark side of social media paid for by the new generation. (in Greek)
The lawsuits do not end here
The settlement concerns this particular multi-state case. It does not resolve the thousands of lawsuits filed by families, school districts and other public bodies.
Separate cases against TikTok, YouTube and Snapchat are also continuing. Meta has also said it will appeal rulings in New Mexico, where total penalties of $942 million were imposed.
Listen to this: Podcast episode: Digital detox: What science says about the new trend of returning to “dumb phones”. (in Greek)
The settlement prevents a final court judgment on whether the apps’ design was unlawful. It nevertheless mandates specific changes that could affect how millions of teenagers use the world’s largest social networks.
No. The company accepted the settlement without admitting unlawful conduct or responsibility for the harms described by the states.
Not exactly. It is the maximum value of the settlement. The final amount may depend on the detailed terms for implementing the agreement.
For now, the announced terms apply to teenage users in the United States. No announcement has been made that the same measures will apply in Cyprus or the rest of the European Union.
No. Thousands of separate lawsuits brought by families, school districts and state authorities remain ongoing.
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